Territories Mining and Exploration 2012

Economy • Industry Partners • Logistics • Services • Northwest Territories • Nunavut

Global Business Reports Industry Explorations EXPERT OPINION

Canada’s North is home to world-class encourages private sector investments Natural Resources natural resources that represent tre- in mining and exploration. For every mendous economic potential. Current- region that attracts economic develop- Development in ly, the mining and energy sectors are ment, there are improvements in living Canada’s North responsible for about one-quarter of conditions, health and safety, education Northern GDP and approximately 5,000 and employment. In short, development jobs. leads to a higher standard of living and Natural Resources Canada (NRCan) seeks quality of life. to enhance the responsible development According to some estimates, one-quar- and use of Canada’s natural resources and ter of our known reserves of conven- The Government of Canada is commit- the competitiveness of Canada’s natural tional oil and gas can be found in the ted to ensuring that Northerners have resources products. NRCan develops pol- North. The number of mines in opera- access to the same economic oppor- icies and programs that enhance the con- tion continues to grow, and exploration tunities as all Canadians, which is why tribution of the natural resources sector to activities are on the rise. In all, more the Northern Jobs and Growth Act was the economy and improve the quality of life than 25 projects are in the works for introduced. This Act fulfills obligations for all Canadians. Canada’s Arctic, representing over $20 flowing from land claims, and propos- billion in potential investment in the es mechanisms to improve regulatory mining sector. If developed, these pro- processes, encourage investment, and jects would create thousands of direct allow resources to be developed in a jobs, as well as thousands of indirect sustainable manner. These changes jobs in the manufacturing, transporta- will help create a more stable invest- tion and services sectors. ment climate in the North by increas- ing the predictability and efficiency of The Government of Canada is laying the the review process for major northern foundation for economic development projects. This will lead to jobs, econom- in the North through initiatives such as ic growth and long-term prosperity for the Geo-mapping for Energy and Min- Northerners. erals (GEM) program. This $100-million program is delivering fundamental pub- The abundance of natural resources in lic geoscience knowledge that enables Canada’s Arctic could potentially fuel Northerners to make informed deci- the country’s prosperity for decades sions about their future economy and to come. The Government of Canada society. has made the North a priority, and it is committed to ensuring that Northerners GEM collects information that provides benefit from the significant natural re- a better understanding of the resource source reserves that are found in their potential in the North, which in turn region. •

Industry Explorations Global Business Reports // TERRITORIES MINING AND EXPLORATION 2012 3 18 43 13 46 96 32 60 33 125 34 146 69 70 CASE STUDIES CASE 89 EXPERT OPINIONS EXPERT Industry leaders discuss the impor- In-depth looks at unique features, The premiers of all three territories, tance of engaging local communities, such as the continued role of placer alongside relevant territorial and geological characteristics of Yukon, mining in the modern industry and federal ministers, discuss current reg- coping with the North’s unique chal- the unique geological features of ulations, future plans, and their visions lenges, and exporting their expertise Nunavut’s Baffin Island. for the mining industry. abroad. GOVERNMENT INTERVIEWS INTERVIEWS GOVERNMENT

Overview PARTNER 38. Shawn Ryan YUKON PROSPECTING LEGEND The Emerging North 40. Mineral-by-Mineral Guide: Gold 8. An Introduction to Canada INTRODUCTION AND OVERVIEW 43. Case Study PLACER MINING 10. Interview with the Mining Association of Canada PIERRE GRATTON, 44. Interview with Victoria Gold JOHN MCCONNELL, DIRECTOR, PRESIDENT PRESIDENT & CEO, AND RICK MEYERS, TECHNICAL AND NORTHERN AFFAIRS & CEO 11. Underexplored, Underdeveloped and Undervalued AN INTRODUCTION TO 44. Interview with Anthill Resources MING AN FU, PRESIDENT CANADA’S EMERGING NORTH 45. Interview with Klondike Gold ERICH RAUGUTH, PRESIDENT & CEO 13. Interview with the Canadian Institute of Mining, Metallurgy and 45. Interview with Kestrel Gold WILLIAM TAYLOR, VP EXPLORATION Petroleum CHUCK EDWARDS, FORMER PRESIDENT 46. Searching for the Source of Placer Gold WILLIAM TAYLOR, VP 13. Interview with the Canadian Northern Economic Development Agency EXPLORATION, KESTREL GOLD INC. (CanNor) LEONA AGLUKKAQ, MP FOR NUNAVUT & MINISTER RESPONSIBLE 50. Mineral-by-Mineral Guide: Silver and Copper FOR THE NORTH 52. Interview with Alexco Resource CLYNTON R. NAUMAN, PRESIDENT & CEO 54. Interview with Western Copper and Gold DALE CORMAN, CHAIRMAN, CEO & DIRECTOR, & PAUL WEST-SELLS, PRESIDENT & COO Emerging Industry Partners 55. Interview with Copper North Mining SALLY EYRE, PRESIDENT & CEO Canada’s Northern Aboriginal Peoples 56. Interview with Capstone Mining DARREN M. PYLOT, PRESIDENT, CEO & DIRECTOR AND CINDY BURNETT, VP INVESTOR RELATIONS 16. The Strength of Local Communities METIS, INUIT AND FIRST NATIONS 57. Interview with AM Gold JOHN FIORINO, CEO & DIRECTOR 17. Interview with the First Nation of Nacho Nyak Dun CHIEF SIMON 58. Mineral-by-Mineral Guide: Zinc, Rare Earth Elements and Plati- MERVYN, SR num 18. The Importance of Local Community Development GRANT PEARSON, VP 60. How to Build a Mine in Canada’s North YUKON ZINC CORPORATION BUSINESS DEVELOPMENT, NUNA LOGISTICS LTD, NUNA GROUP OF COMPANIES 19. Land Claims and Negotiations 101 THE REGULATORY ENVIRONMENT AND 61. Interview with Endurance Gold ROBERT T. BOYD, PRESIDENT, CEO & ABORIGINAL PEOPLES DIRECTOR 21. Claiming Their Share ABORIGINAL CORPORATIONS AS POTENTIAL 62. Interview with Prophecy Platinum JOHN LEE, CHAIRMAN DEVELOPMENT PARTNERS 64. Interview with Yukon Zinc JING YOU LU, CHAIRMAN & CEO 22. Interview with Det’on Cho Corporation ROY ERASMUS, JR. PRESIDENT AND CEO 23. Interview with Nunnavut Tunngavik CATHY TOWTONGIE, PRESIDENT The Northwest Territories 24. Interview with SNC-Lavalin DALE CLARKE, EXECUTIVE VP, GLOBAL MINING The Land of the Midnight Sun AND METALLURGY 26. Interview with Tetra Tech D. BRENT THOMPSON, SENIOR VP, MINING AND 68. Beautiful Land MINING IN TRADITIONAL TERRITORIES MINERALS 69. Interview with the Government of the NWT THE HON. BOB MCLEOD, 27. Interview with Kitnuna Corporation KITNUNA CORPORATION PREMIER 70. Interview with the Government of the NWT THE HON. DAVID RAMSAY, MINISTER OF INDUSTRY, TOURISM AND INVESTMENT, AND MINISTER OF TRANS- PORTATION Yukon 70. Interview with the Government of the NWT THE HON. DAVID RAMSAY, The Modern Day Klondike Gold Rush MINISTER OF INDUSTRY, TOURISM AND INVESTMENT, AND MINISTER OF TRANS- PORTATION 30. A Golden Nugget THE TRANSFORMATION OF YUKON INTO A MINING HUB 71. Rules and Regulations AN OVERVIEW OF THE REGULATORY FRAMEWORK 32. Interview with the Government of Yukon THE HON. , IN NWT PREMIER 72. Interview with Lawson Lundell CHRISTINE J.S. KOWBEL, PARTNER 33. Interview with the Government of Yukon THE HON. , GOV- 74. Mineral-by-Mineral Guide: Diamonds ERNMENT HOUSE LEADER, MINISTER OF ENERGY, MINES AND RESOURCES, 76. Interview with Diavik Diamonds NIELS KRISTENSEN, PRESIDENT & COO YUKON DEVELOPMENT CORPORATION/YUKON ENERGY CORPORATION, YUKON 77. Interview with Peregrine Diamonds BROOKE CLEMENTS, PRESIDENT OFFICE OF THE MINISTER 78. Mineral-by-Mineral Guide: Tungsten, Rare Earth Elements and Nickel 34. Interview with the Government of Yukon THE HON. CURRIE DIXON, MIN- 80. Interview with North American Tungsten Corporation STEPHEN M. ISTER OF ENVIRONMENT, ECONOMIC DEVELOPMENT, YUKON OFFICE OF THE LEAHY, DIRECTOR, CHAIRMAN OF THE BOARD & CEO MINISTER 81. Interview with GGL Resources RAYMOND A. HRKAC, PRESIDENT & CEO 35. Rules and Regulations AN OVERVIEW OF THE REGULATORY FRAMEWORK 82. Mineral-by-Mineral Guide: Gold and Zinc IN YUKON 84. Interview with Canadian Zinc JOHN KEARNEY, CHAIRMAN, PRESIDENT & 36. Interview with the Yukon Environmental and Socioeconomic Assess- CEO ment Board (YESAB) STEPHEN J. MILLS, CHAIR OF THE BOARD 85. Interview with Fortune Minerals ROBIN E. GOAD, PRESIDENT & CEO AND 37. Interview with Austring, Fendrick, Fairman & Parkkari GREG FEKETE, THOMAS R. RINALDI, VP OPERATIONS MINERAL GUIDES GREG RASMUSSEN, PROCESS PROCESS GREG RASMUSSEN, operators about future plans. operators about future stage they are at and asking their stage are at and asking they projects there are, explaining what projects there are, explaining the three territories, showing what showing the three territories, 39 73 93 Mineral-by-mineral guides to each of guides to each Mineral-by-mineral ARMAGEDDON OR ANOTHER DAY AT THE OFFICE? THE AT DAY ANOTHER OR ARMAGEDDON

REGULATIONS law firms. law WITH INNOVATIVE SOLUTIONS INNOVATIVE WITH OWNERS MCCAW, AMERICA AND OPERATIONS PROJECTS VP, GINGRICH, AND DUANE METALS LTD CONSTRUCTION DEVELOPMENT VANCOUVER DIRECTOR AMERICA Appendix Into the Future 158. Company Guide & Index 160. Interview with Cambridge House 161. Interview with NAI Interactive The Service Sector North in Canada’s How to Build a Mine and Investment Finance 128. PRESIDENT MCCOACH, JOHN Exchange 129. Interview with the TSX Venture THE 130. Engineering, Consulting and Construction UNCOVERING NORTH & DEVON 132. Interview with McCaw NorthBRIDGET Drilling and Blasting NORTH GENERAL MANAGER PERRY, 134. Interview with CAE Mining SCOTT 135. Mapping and Geoscience AIDING EXPLORATION VIVIAN, 136. Interview with Aurora Geoscience GARY PRESIDENT CEO 137. Interview with Rescan Environmental Services CLEM PELLETIER, AND MINING PRESIDENT, C. STANLAKE, 139. Interview with AMEC ROBERT 140. Interview with Xstrata Technology XSTRATA CANADA, TECHNOLOGY XSTRATA MINERAL PROCESSING, MANAGER, PRESIDENT 142. Interview BYRAM, with Pelly Construction KEITH CEO 143. Interview with ALX Exploration Services ALAN LEBEDOFF, CIMON, PRESIDENT 144. Interview with Danmax Communications DANNY PRESIDENT RUDOLPH, 145. Interview with Cobalt Construction SHAUM PELLY PRESIDENT, 146. Northern BYRAM, Expertise Abroad KEITH CONSULTANT 147. Interview with Knight Piésold JEREMY HAILE, PRINICPAL VP BUSINESS 148. Interview with Nuna Logistics GRANT PEARSON, OPERATIONS OF DIRECTOR MACGREGOR, 150. Interview with Sodexo IVOR IN MANAGER LANG, METALLURGY 151. Interview with SGS Canada JAKE THE NORTH IN CONSIDERATIONS 152. Caribou Crossing ENVIRONMENTAL 153. Interview with EBA Engineering Consultants ED BOEVE, PROJECT NORTH & METALS, MINERALS VP, BRUNO, 155. Interview with AECOM LOU Explanations of each territory’s territory’s Explanations of each TOM HOEFER, HOEFER, TOM regulatory structure and business regulatory structure with some of the country’s leading with some of the country’s 35 71 92 environment, assisted by interviews by assisted environment,

INDUSTRY THOUGHTS All interviews in this book were originally conducted between April and August of 2012. of 2012. August April and All interviews originally conducted between in this book were JASON BREWSTER, CEO & PRESIDENT BREWSTER, JASON A Global Business Reports Publication | For more information, contact [email protected] or follow us on Twitter @GBReports.com Twitter us on contact or follow more information, [email protected] | For Publication A Global Business Reports This research has been conducted by Katie Bromley, Joana Cook, Oliver Cushing, Chloe Dusser and Pelin Arin | Edited by Barnaby Fletcher Fletcher Barnaby Arin | Edited by Cushing, Cook, Oliver Chloe Dusser and Pelin Joana Bromley, Katie by has been conducted research This operations in the North. leaders regarding infrastructure leaders regarding infrastructure retention and training of staff, regu- of staff, retention and training 60 65 72 47 Selected discussions from business Selected discussions from challenges, environmental concerns, environmental concerns, challenges, lations, and the risk versus reward of reward lations, and the risk versus CANADA’S NORTH CANADA’S MANAGER ENGINEERING PIESOLD LTD. KNIGHT CONSULTANT, PRINCIPAL AND DIRECTOR AND CEO PRESIDENT AND CEO DEPUTY PREMIER & MINISTER OF ECONOMIC DEVELOPMENT PREMIER & MINISTER DEPUTY DIRECTOR EXECUTIVE IN NUNAVUT DIRECTOR PREMIER 111 Although where possible information has been updated to reflect new developments, it should be noted that in some cases views and facts have changed since the time of the interview. facts have and it should be noted that in some cases views developments, has been updated to reflect new Although where possible information Transportation and Logistics in Canada’s Territories in Canada’s and Logistics Transportation IN AND LOGISTICS and So Much Snow TRANSPORTATION 114. Sea, Sky, OWNER 116. Interview with Great River Air CRAIG UNTERSCHUTE, PRESIDENT & CEO 119. Interview with NEAS SUZANNE PAQUIN, GENERAL 122. Interview with Nu Line Powerline Contractors KEVIN ROSS, PRESIDENT TAYLOR, 123. Interview with Alkan Air WENDY KERR, DIRECTOR, 124. Interview with Qulliq Energy Corporation STEPHEN 125. Hydropower the Key to Northern Development JEREMY HAILE, Navigating the Artic North the Navigating 102. Mineral-by-Mineral Guide: Uranium and Diamonds PRESIDENT MANSON, CEO, 105. Interview with Stornoway Diamonds MATT and Base Metals 106. Mineral-by-Mineral Guide: Iron MCKINNON, PRESIDENT 109. Interview with Canadian Orebodies GORDON GINGERICK, CHAIRMAN, 110. Interview with Advanced Explorations JOHN THE HON. PETER TAPTUNA, TAPTUNA, 90. Interview PETER with the Government of Nunavut THE HON. 91. Interview with the NWT and Nunavut Chamber of Mines FRAMEWORK REGULATORY THE OF 92. Rules and Regulations AN OVERVIEW 94. Mineral-by-Mineral Guide: Gold ISLAND 96. Case Study BAFFIN VP EXPLORATION POTTS, 97. Interview with Commander Resource STEVE AND CEO PRESIDENT, DOWNEY, 98. Interview with Elgin Mining PATRICK 100. Interview with Prosperity Goldfields ADRIAN FLEMING, CEO 101. Interview with Anconia Resources Nunavut Last Frontier Canada’s SPACES VAST OF NUNVUT’S 88. The Great Beyond THE POTENTIAL AARIAK, 89. Interview EVA with the Government of Nunavut THE HON. Courtesy of Nuna Logistics The Emerging North

An Introduction to Mining in Canada and its Territories

“The current government has a clear policy on the north being a priority; all the branches and sectors of GSC's departments have priority programs in the north. GSC's Geo-mapping for Energy and Minerals program is its most important program in conjunction with its Polar Continental Shelf project; half of GSC's human re- sources are dedicated to this joint program. There are an abundance of resources in the northern territories; we are working with the stakeholders in the north to advance the northern geoscience knowledge base.”

- Donna Kirkwood, Director General, Central and Northern Canada, Geological Survey of Canada Global Business Reports ARTICLE Industry Explorations An Introduction to Canada

A brief overview of the Canadian mineral industry

Economically, Canada is strong. It enjoys Canada continually attracts more invest- Although these prices are, by and large, the 15th largest GDP in the world and ment in non-ferrous exploration than any equal to or even greater than those of an average GDP growth rate over the other single country, and according to pre-financial crash days, their uncertain past few decades that places slightly Metals Economics Group’s Global Ex- nature, exacerbated by the faltering re- above most other industrialized nations. ploration Trends report has done so for covery of the USA and Europe and the Its 3.2% GDP growth in 2010, 2.4% the past decade. In 2011 it accounted for apparent slowing of China’s formerly GDP growth in 2011 and over 2% GDP fully 18% of global exploration budgets, insatiable demand for raw material, has growth forecast for 2012 are modest more than the entirety of Africa or Eur- contributed to wariness among inves- yet pleasingly stable in comparison to asia and losing out on the top spot to tors. Those mines in production already the prospect of a second recession in Latin America (with 25% of the total). are enjoying high, albeit fluctuating, pric- Europe and the faltering recovery of the Yet for all this strength, Canada is no less es for their product, yet for junior com- USA. susceptible to commodity price cycles panies funding is proving increasingly This economic success is based on sta- than any other jurisdiction in the world. difficult to come by. ble foundations. Despite falls in the past During the worst years of the global In such times, investors should be look- the past year or two, Canada still ranks financial crisis the Canadian mining in- ing at projects that offer high reward high in international rankings measuring dustry bore a disproportionate brunt of with little risk. Under-explored territories the ease of doing business or level of the pain. The total value of mineral pro- with proven mineral potential are ide- economic freedom. It has a diversified duction in the country (over $34 billion al, yet today rarely exist outside those economy and an increasingly diversified in 2006) fell by over $16 billion between countries where political instability or export market: although the USA re- 2008 and 2009 and operations had been resource nationalism have kept develop- mains by far the most dominant trading shuttered or suspended at 32 Canadian ment at bay. Canada’s territories, Yukon, partner of Canada, since 2009 the rest mines by 2010. Nunavut, and the Northwest Territories, of the world has seen its share of Cana- Soaring commodity prices, increased are three of the very few exceptions. • da’s trade increase to over 25%, making trade links with the booming commodity it slightly less volatile to the economic market of China (trade volume between fluctuations of its neighbour. the two countries is targeted to reach Canada at a Glance Source: CIA World Factbook In the mining sector, Canada is blessed $60 billion by 2015) and the country’s with an abundance of mineral wealth. technical expertise in the sector saw a Population: 34,300,083 (July 2012 esti- As a mining jurisdiction, both in terms strong rebound in 2010. Planned explo- mate) of its geological potential and the avail- ration spending in Canada rose 73% in Capital: Ottawa Head of Government: Prime Minister ability of domestic expertise, it is rivaled 2010, to form 19% of the total world- Stephen Joseph Harper only by Australia. The stock markets of wide exploration budget; ahead of any Currency: Canadian Dollar (CAD) Toronto are home to over 50% of the other country. The sector (including oil GDP: $1.711 trillion (2011 estimate) world’s publicly-listed mining and explo- and gas) returned to providing 4.5% of Growth Rate: 2.4% (2011 estimate) ration companies and underneath the GDP, after falling to roughly 3% over the GDP per Capita: $40,500 (2011 estimate) country’s 9,984,670 sq km (the second course of the crisis. Economic sector breakdown: agricul- largest in the world) lie deposits of 54 Since then, performance of the miner- ture: 1.8%, manufacturing: 28.5%, servic- es: 69.7% (2011 estimate) different mineral types. als sector has been mixed. Commodity Exports: $463.1 billion (2011): motor Canada is the world’s leading producer prices, although still high, have begun vehicles and parts, industrial machinery, of potash, accounting for a third of global to waver. Gold has fallen from a peak of aircraft, telecommunications equipment; production. It is the world’s second larg- almost $1,900/oz in September 2011 to chemicals, plastics, fertilizers; wood pulp, est producer of uranium, in the world’s little over $1,700 at the time of writing. timber, crude petroleum, natural gas, top five countries for production of alu- Copper reached highs of over $4,500/ electricity, aluminum Imports: $460.7 billion (2011): machinery minum, cobalt, gem-quality diamond, in- lb early 2011 and at the time of writing and equipment, motor vehicles and parts, dium, nickel, platinum-group metals, and were below $3,500. Silver has gone crude oil, chemicals, electricity, durable sulfur, and in the world’s top 10 produc- from a high of just under $49/oz to just consumer goods ers of a range of other minerals, includ- over $33, falling well below $30 at times Major Trade Partners: US, China, Mexico, ing molybdenum, zinc, and gold. in between. UK

8 Global Business Reports // TERRITORIES MINING AND EXPLORATION 2012 Industry Explorations Global Business Reports Industry Explorations FACTSHEET

Reykjavik

Yukon Territory

Whitehorse Northwest Nuuk Nunavut (Godthab) Territories Iqaluit Yellowknife Territories

CANADA Alberta British Columbia Saskatchewan Newfoundland Edmonton Manitoba & Labrador Vancouver Quebec Victoria Calgary St. John's Prince Regina Ontario Edward Winnipeg New Brunswick Island Quebec Charlottetown Fredericton Montreal Halifax Nova Ottawa Scotia Toronto

250km UNITED STATES

Population and Workforce information Source: CIA World Factbook, NRC -$8.011 2.46% 34,300,083 Population 2012 MILLION GDP Growth Rate 308,000 2011 Mining Employees 2010 Net Foreign

Source: World Bank (2.1% of total employment) Direct Investment (current US dollars) 2011 18.7M Source: World Bank $1.7361 Labor Force 2012

TRILLION 9.4% Poverty Line 2010 3.1% GDP Inflation Rate (current US dollars) 2011 7.5% Average Consumer Prices 2011 Unemployment Rate 2011 Source: World Bank Source: CIA World Factbook

Industry Explorations Global Business Reports // TERRITORIES MINING AND EXPLORATION 2012 9 Global Business Reports INTERVIEW THE MINING ASSOCIATION OF CANADA Industry Explorations

structure; and small population equating to Interview with limited skill availability. The upside is that it remains largely undiscovered with huge resource potential; discoveries made have Pierre Gratton & been world-class.

What activities is MAC conducting to Rick Meyers promote mining in the north? PG: MAC's role is to represent its members to the federal government, and to persuade PRESIDENT AND CEO; VICE PRESIDENT, TECHNICAL AND NORTHERN the Canadian government to make mining AFFAIRS, THE MINING ASSOCIATION OF CANADA in Canada an attractive investment. It is the Canadian government's job to promote Can- Can you tell us about the history of The ritories has almost tripled from $1.6 billion ada's north as a mining destination. Mining Association of Canada in Cana- to $4.5 billion annually; and substantial in- RM: Currently, Yukon offers the most eco- da's north, specifically in the Northwest creases in skills and community develop- nomic alternative for mining in the north; it Territories and Nunavut where your key ment, and education, have permeated from has the most infrastructure and population members are? impact agreements with aboriginal groups. of the north's three jurisdictions. Nunavut PG: Over the last 15 years our current has virtually no infrastructure, a small pop- membership in the Northwest Territories What role will MAC take in the forthcom- ulation with low levels of education, and has been built around the diamond indus- ing development potential of Canada's limited skilled labor. try, starting in 1996 with Ekati, followed by north? Diavik, then Snap Lake, and currently being RM: On behalf of our members our advo- What initiatives have your members in- developed Gaucho Kue. Initially we focused cacy work entails working with the federal troduced to assist the shortage of skilled on the Northwest Territories. During this government who is the regulatory and leg- labor in the north? period MAC saw the development of a new islative lead in Nunavut and the Northwest RM: In every new mine development, our regulatory regime for the north with the Territories. We are continuously seeking to members have engaged in: skilled train- McKenzie Valley Resource Management streamline and improve the complexities of ing projects; on-the-job management and Act. MAC has assisted with the difficulties the regulatory system. We also encourage employee literacy programs; and how to associated with new legislation, and poor the federal government to invest in geosci- manage personal income. The population or non-geoscience mapping in Nunavut ence, and the northern infrastructure. in the north has a very low experience of and the Northwest Territories. Nunavut has employment, especially in the heavy mining become increasingly attractive from an ex- Do the relevant governments under- industry. ploration standpoint, but is lacking in geo- stand the need for more geoscience science information and infrastructure; it information, and if so, are they taking What are the key issues we should is a challenging place in which to develop steps to correct this? be looking at as the mining industry new projects. Currently, there is only one PG: In the early 2000s it was identified that evolves in the north? producing mine, namely Meadowbank Gold 80% of Nunavut and around 60% of the PG: MAC is awaiting the Nunavut Planning Mine, owned by Agnico-Eagle Mines Limit- Northwest Territories were geoscientifical- and Project Assessment Act to be tabled. ed, but there is great geological potential in ly unmapped, and Yukon's quality of map- We are advocating for similar improvements the region illustrated by the presence of the ping was inferior to that of southern Cana- that have been seen south of 60 which will majors, for example, Xstrata, Vale. da. MAC was behind a number of studies remove on-going irritants in the north i.e. RM: The Prospectors and Developers Asso- and proposals to persuade the Canadian double-bonding at Meadowbank, Nunavut, ciation of Canada would have a more com- government to reinvest in northern geosci- where posting of its bonding for reclama- prehensive perspective of mining activity ence; ultimately we were successful and tion security has to be with both the federal trend in Yukon. There is not the past volume the government committed investment to government and Regional Nunavut Associ- of junior exploration in the Northwest Ter- GEM (Geo-mapping for Energy and Mineral ation; neither licensing authority can agree ritories due to the complexity of the new program). who has sole responsibility for bonding, this regulatory procedures, a reversal of what is remains unresolved. Water licenses issued happening in Yukon and Nunavut. There are Do you feel that the lack of geoscience in in the north, particularly the Northwest Ter- two unsettled land claims in the Northwest the north is the reason why mining has ritories, have been of a short duration, only Territories, which are adding to the reduced only just started to open up? three to five years; in southern Canada a junior exploration interest. On the upside PG: Geoscience is one of the basic build- life-of-mine license is issued, reviewed peri- with the increase in diamond mine produc- ing-blocks of minerals economy; new maps odically. MAC's lobbying for longer water li- tion, the Northwest Territories has enjoyed attract junior exploration companies. The censing has seen modest progress with the the following: growth in mineral production lack of geoscience has been one of the agreement of an eight-year license. If these, with 30,000 person years of employment; reasons why mining growth in the north and other issues are addressed, it will be more than $12 billion in investment at the has been limited. Other reasons are: se- easier for companies to make the major in- mine sites; the GDP of the Northwest Ter- vere climate; remote location; lack of infra- vestments required in the north. •

10 Global Business Reports // TERRITORIES MINING AND EXPLORATION 2012 Industry Explorations